RIL Open to Ex­pand­ing Jam­na­gar Ca­pac­ity

RELIANCE GROUP FLAG­SHIP CAN RAISE RE­FIN­ING CA­PAC­ITY TO 100 MT A YEAR BY 2030 AT AN ES­TI­MATED COST OF $10 BIL­LION

Resource Digest - - CONTENT -

Reliance In­dus­tries Ltd (RIL) is keep­ing its op­tions open to sig­nif­i­cantly ex­pand its gi­ant Jam­na­gar re­fin­ery in the long run, de­pend­ing on fuel de­mand but it has not taken any in­vest­ment de­ci­sion for such a project, ac­cord­ing to in­dus­try sources and agency re­ports.

Jam­na­gar al­ready has the ca­pac­ity to process 60 mil­lion tonne of crude oil a year, mak­ing it the big­gest re­fin­ing com­plex in the world.the com­pany can ex­pand this ca­pac­ity to 100 mil­lion tonne a year by 2030 at an es­ti­mated cost of $10 bil­lion.

Reliance In­dus­tries Ltd men­tioned the pos­si­ble ex­pan­sion in a pre­sen­ta­tion on en­ergy sce­nar­ios up to 2030 made to In­dia's Cen­tre for High Tech­nol­ogy (CHT). CHT is a body un­der the oil min­istry and works in the field of oil re­fin­ing, han­dling stor­age. It is also in­volved in the per­for­mance review of re­finer­ies.

The Reliance In­dus­tries Ltd spokesman was not avail­able for com­ment but in­dus­try sources said that there was no con­crete pro­posal or any in­vest­ment de­ci­sion taken to ex­pand the Jam­na­gar re­fin­ing com­plex.

“The plan to is to have a petrol and diesel out­put ca­pac­ity of close to 60 mil­lion tonne by 2030, pro­duced from cheaper heavy grades,“said an in­formed per­son. The Jam­na­gar re­fin­ery's so­phis­ti­cated tech­nol­ogy al­lows it to process low grades of crude oil, which are cheaper, to pro­duce more high-value re­fined prod­ucts. This en­ables Reliance In­dus­tries Ltd to re­port much higher re­fin­ing mar­gins than its in­ter­na­tional peers.

In­dia is al­ready an ex­porter of re­fined prod­ucts be­cause of its huge re­fin­ing ca­pac­ity. State-run com­pa­nies are plan­ning to build a new re­fin­ery with a ca­pac­ity of 60 mil­lion tonne ayear, which would cre­ate a huge ex­portable sur­plus at a time when the big­gest oil con­sumers are plan­ning a big shift to elec­tric ve­hi­cles.

In­dia also plans to make its elec­tric ve­hi­cles the main mode of trans­porta­tion by 2030. State-run EESL has al­ready in­vited bids for elec­tric cars, which would be used by gov­ern­ment de­part­ments and state-run com­pa­nies.

Gov­ern­ment of­fi­cials say that if oil de­mand stag­nates or con­tracts with the ad­vent of e-ve­hi­cles, many re­finer­ies would be able to start pro­duc­ing petro­chem­i­cals in­stead of trans­port fu­els.

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